Effects of using either salaries or wages to enhance employees’ morale are predicted by Maslow’s hierarchy of needs theory. The hierarchy of needs theory postulates that the willingness of an employee to corporate towards attainment of organizational goals depend on the capacity of an organization to meet the employees’ physical and psychological needs (Lee & Robyn, 2016). The most immediate need among employees is physiological items including food, shelter and clothing. The next immediate need is financial security and mental and physical wellbeing. Three other needs include the need for a sense of belonging, need for esteem and desire for self-actualization (Carvajal & Popovici, 2016). Under the Maslow’s hierarchy of needs, employees whose
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On the other hand, use of salaries including medical allowances and paid vacations satisfy additional needs including the needs for love and belongings and the needs for esteemed recognition within the workplace. The five categories of needs captured in the Maslow’s hierarchy are physiological and psychological in nature. Use of salaries satisfy most of the needs in the Maslow’s hierarchy; hence, provoke positive attitudes and behavioral responses associated with high morale among employees (Lee & Robyn, 2016). Contrarily, compensation systems based on wages only satisfy the physiological needs of employees. Thus, the unsatisfied psychological needs of employees account for low morale among employees paid on wages. Therefore, Maslow’s hierarchy of needs postulates that wages and commissions affect employees’ morale …show more content…
Total wages for a month are calculated as the hours worked in a month multiplied by the hourly wage rate (Cole, 2002). In a time-based wage system, employees who are absent from work for whatever reasons will incur reduced wages because of the unworked hours. Contrarily, salaries are paid to individuals regardless of their efforts or reasons for occasional absence from work. In practical settings, working parents on wage arrangements who take a leave to attend to a sick child will experience wage reductions because of their absence from work. Contrarily, a parent under a salary arrangement will not experience reduced salaries because of taking a few hours break from work to attend to a sick
On the other hand, use of salaries including medical allowances and paid vacations satisfy additional needs including the needs for love and belongings and the needs for esteemed recognition within the workplace. The five categories of needs captured in the Maslow’s hierarchy are physiological and psychological in nature. Use of salaries satisfy most of the needs in the Maslow’s hierarchy; hence, provoke positive attitudes and behavioral responses associated with high morale among employees (Lee & Robyn, 2016). Contrarily, compensation systems based on wages only satisfy the physiological needs of employees. Thus, the unsatisfied psychological needs of employees account for low morale among employees paid on wages. Therefore, Maslow’s hierarchy of needs postulates that wages and commissions affect employees’ morale …show more content…
Total wages for a month are calculated as the hours worked in a month multiplied by the hourly wage rate (Cole, 2002). In a time-based wage system, employees who are absent from work for whatever reasons will incur reduced wages because of the unworked hours. Contrarily, salaries are paid to individuals regardless of their efforts or reasons for occasional absence from work. In practical settings, working parents on wage arrangements who take a leave to attend to a sick child will experience wage reductions because of their absence from work. Contrarily, a parent under a salary arrangement will not experience reduced salaries because of taking a few hours break from work to attend to a sick